Luzhou Laojiao Applies for Patent on "Digital RMB Targeted Payment Based on Smart Commercial Contracts," Revolutionizing Supply Chain Finance Security

Luzhou Laojiao Applies for Patent on "Digital RMB Targeted Payment Based on Smart Commercial Contracts," Revolutionizing Supply Chain Finance SecurityOn December 2nd, 2024, the State Intellectual Property Office of China announced that Luzhou Laojiao Co., Ltd

Luzhou Laojiao Applies for Patent on "Digital RMB Targeted Payment Based on Smart Commercial Contracts," Revolutionizing Supply Chain Finance Security

On December 2nd, 2024, the State Intellectual Property Office of China announced that Luzhou Laojiao Co., Ltd. had filed a patent application titled "Method and System for Implementing Digital RMB Targeted Payment Based on Smart Commercial Contracts," with publication number CN119048076A and an application date of August 2024. This patent application aims to address the high risks associated with targeted payments in multi-tiered trade relationships, offering enhanced security and efficiency to supply chain finance.

The patent abstract clearly outlines the core innovation. It leverages blockchain technology and smart commercial contracts to design a novel method and system for digital RMB targeted payments. The system cleverly combines the convenience of digital RMB with the security of blockchain technology, providing a reliable payment solution for complex supply chain finance scenarios.

The patent's main process is as follows: First, each trading partner involved in the multi-tiered trade relationship needs to open a digital RMB wallet at a bank and complete wallet binding and the signing of a controlled sub-wallet. This step ensures the identifiability of each participant and lays the foundation for subsequent targeted payments.

Next, the financing platform plays a crucial role. Based on the identity information and upstream and downstream trade relationships of each trading partner, it formulates precise targeted payment rules. These rules are not simple instructions but are translated into executable smart commercial contracts. These smart contracts are meticulously designed to automatically execute the payment process according to preset rules, ensuring the targeted flow of funds.

Once created, these smart contracts are deployed onto a dedicated supply chain finance blockchain. The immutability and transparency of blockchain technology ensure the security and traceability of the payment process. Any attempt to tamper with transaction records will be immediately identified, effectively preventing fraud.

When a payment is needed, each trading partner initiates a payment request through the financing platform using the available funds in their controlled sub-wallet. This step strictly adheres to the preset payment rules, effectively preventing the arbitrary flow of funds.

After the request is submitted, the bank institution will call and execute the smart contracts deployed on the supply chain finance blockchain. The contract rigorously verifies the payment request, checking whether the request information conforms to the preset payment rules and whether the sub-wallet initiating the payment has sufficient available balance. Only when all verification conditions are met will the bank institution complete the targeted payment according to the payment request.

The entire process is driven by smart contracts, with a high degree of automation, significantly reducing the possibility of manual intervention and thus minimizing human error and operational risks. From each trading partner opening a digital RMB wallet, to the financing platform formulating payment rules, to the bank institution executing smart contracts to complete the payment, every link is interlocked, effectively ensuring fund security.

This patented technology offers significant advantages in solving the problem of targeted fund payments in multi-tiered trade relationships. Traditional payment methods often struggle to ensure the accurate flow of funds in multi-tiered trade, resulting in high financial risks. For example, in complex supply chains, funds may be withheld or misappropriated, causing significant economic losses. Luzhou Laojiao's patented technology effectively mitigates these risks through the automated execution of smart contracts, ensuring the targeted flow of funds.

The technology has broad application prospects, extending beyond Luzhou Laojiao's own business to other industries requiring multi-tiered trade, such as textiles and apparel, electronics manufacturing, and food processing. This technology can effectively reduce supply chain finance risks, improve capital turnover efficiency, and ultimately enhance overall economic efficiency. The successful patent application also reflects Luzhou Laojiao's strength and determination in technological innovation, contributing to the digital transformation of supply chain finance. This technology not only enhances payment security and efficiency but also provides strong support for building a safer, more transparent, and more efficient supply chain finance ecosystem.

The significance of this patent application lies not only in the technological innovation itself but also in its potential impact on the future development model of supply chain finance. It offers a novel approach to solving the problem of fund security in multi-tiered trade relationships and is expected to become an important driving force for the digital transformation of supply chain finance. By organically combining blockchain technology, smart commercial contracts, and digital RMB, Luzhou Laojiao demonstrates its proactive exploration in fintech innovation, setting a good example for industry development. It is foreseeable that the mature application of this technology will bring tangible benefits to many companies and profoundly change the future landscape of supply chain finance. It is of great significance in improving enterprise risk management capabilities, optimizing capital turnover efficiency, and promoting the digital transformation and upgrading of the entire industry. This technology is undoubtedly a major breakthrough in the field of supply chain finance, and its future practical applications are highly anticipated. In conclusion, Luzhou Laojiao's patent application is not only a technological innovation but also a bold exploration of the future development model of supply chain finance, with far-reaching significance and widespread impact.